US-based multinational parcel delivery service provider, Tennessee-based FedEx Groups confirmed on Wednesday, the 7th of August 2019, that the American courier delivery services company would be terminating its contract with Amazon.com Inc.
for small-package ground delivers, as Amazon had been centering its focus more on to building its own delivery chain. In point of fact, Wednesday’s (August 7th) FedEx move was anticipated after the world’s largest online retailer, Amazon.com Inc., had cancelled its contract for aircraft-based express delivery service with Memphis-based multinational courier service provider, FedEx.
Besides, adding that the company was looking to expand its services, which might involve a steep competition with its much-larger competitor, Amazon.com Inc., FedEx said on Wednesday’s (August 7th) statement, “This change is consistent with our strategy to focus on the broader e-commerce market,” while an Amazon spokeswoman had been quoted saying as a response on Wednesday (August 7th), “(Amazon) is constantly innovating to improve the carrier experience and sometimes that means reevaluating our carrier relationships.
” Nonetheless, followed by FedEx’s Wednesday’s (August 7th) statement to suspend tie-up with Amazon’s ground-based delivery service, shares of FedEx wrapped up the day down by 0.33 per cent to $160.66 per share, while shares of Amazon.com Inc. ended the day with a decent gain of 0.31 percent to settle down at $1,793.40.